State Cos Win a 3rd of Small Oil & Gas Fields in Auction
New Delhi: State-owned companies have won a third of the small oil and gas fields in a government auction with the balance going to private firms such as Adani, Sun and many newcomers. The Cabinet on Wednesday approved the award of contract to develop 31 contract areas comprising 44 discovered small fields that had been lying undeveloped for decades. The government had received 134 bids for 34 of the 46 contract areas in an auction in November. No successful bidder was announced for three areas.
Bharat PetroResources, a subsidiary of state-run Bharat Petroleum, won the rights to develop five contract areas, while Prize Petroleum, a unit of Hindustan Petroleum, got three. Indian Oil Corp, another state refiner, also won three bids. Sun Petrochemicals, owned by Sun Pharmaceuticals’ promoter Dilip Shanghvi, won a contract, marking his entry into the upstream business. The firm had submitted bids for 7 contract areas. Adani Welspun Exploration, which had bid for two fields, got one.
Akhil Teja Natural Resources, a private firm that made 17 bids, the highest, won not a single field in the auction. Nippon Power secured two contract areas although it had bid for eight. Megha Engineering, Ramayna Ispat, Oilmax and Hindustan Oil Exploration won two contract areas each. Gem Laboratories also secured a field.